The company behind a data center project in Hubbard has withdrawn its county tax abatement request, County Judge Shane Brassell announced Tuesday, April 7, after the Hill County Commissioners Court heard concerns from residents and met in executive session.
Site prep has been underway since November on the Nexus property, which encompasses over 2,000 acres between Highway 171 and County Road 3369.
Brassell said that the county was not told why Nexus withdrew its request. “It could be due to our negotiation tactics, I’m not exactly sure,” Brassell told those gathered in the courtroom. “But we were advised that the Nexus data center project has walked away from the negotiating table and will not be seeking an abatement from Hill County.”
The specifics of the negotiations have not been shared publicly, but a Nexus representative said at a November Hubbard town hall that the company was seeking a 10-year Payment in Lieu of Taxes (PILOT) agreement with the county.
Multiple Hill County residents have been speaking out during recent commissioners court meetings, asking the court not to grant a tax abatement for the project. Concerns have ranged from the loss of farmland and rural way of life to questions about public safety and legal compliance.
According to The Texas Tribune, the growth of data centers in Texas is projected to outpace any other state in the country over the next several years, and the projects are getting larger. Drawn by cheap gas, available land and a regulatory market more friendly to natural gas power, companies are flocking to Texas to build more data centers that will support the growth of the artificial intelligence industry.
State lawmakers have already signaled that data centers will be a focus of the next legislative session as debates continue over tax incentives, water use and how much local control communities should have over projects.
In the regular agenda, commissioners approved routine business related to cell phone accounts, bonds for elected officials and a budget amendment for officials’ training.
Brassell also announced that the county is planning a county-wide cleanup event in mid-May, with the date to be announced. The county plans to offer dumpsters and at least one tire trailer in a central location. The judge said that he would like to see the court consider establishing a quarterly cleanup to assist residents.
The court’s next regular meeting is set for Tuesday, April 21, at 8:30 a.m. at the Hill County Courthouse.
The Lakelander 